The debt to income ratio, also known as the DTI, is determined by how much of a person’s gross monthly income goes to paying off loans and debts. For example, a person who has a monthly income of $1,000 per month but spends $500 on loan repayments has a debt to income ratio of 50%.
An individual’s debt to income ratio can have a bearing on future mortgage and car loan applications, as many financial institutions prefer to lend money to those who have fewer pending debts. The new mortgage regulations enacted by the CFPB require a maximum DTI of 43% to be considered a qualified mortgage with the ability to re-pay. Additionally, Loan Officers will look not only at a person’s DTI but also his or her track record for making payments on time.
Those who are looking for an easy to work with California Loan Officer may want to contact Andraya Coulter. Andraya Coulter is a Bay Area based lender who offers loans to individuals and corporate entities alike. She is a Direct Lender with the capacity to broker to a number of sources as well to find her clients the best financing options possible. Best of all she offers a high level of customer service and education to assure her clients understand and are confident with their financing choice.